BDC Buzz
Dividend investing, high income, BDCs, portfolio strategy

TCP Capital: Optimal Leverage For Increased Dividends

TCP Capital (NASDAQ:TCPC) is one of the higher ranked BDCs of the 25 that I cover and is a component in three of my suggested BDC portfolios: 'Risk Averse', 'General' and 'Value & Growth'. TCPC raised equity capital twice in Q4 for net proceeds of over $146 million used to pay down debt. This article will focus on the amount of leverage that TCPC uses and the direct results to shareholders at various levels. I believe the company has two key competitive advantages: low cost of debt capital and lower fee structures both of which will ultimately benefit investors as it grows its portfolio. I believe the current dividend yield of

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